FATF Fifth Round Mutual Evaluation – Are You Ready?

Key takeaways

• All financial service providers are encouraged by the Cayman Islands Monetary Authority (CIMA) to prepare for the Fifth Round Mutual Evaluation (Evaluation) of the Cayman Islands by the Financial Action Task Force (FATF).

• Financial service providers (FSPs) should review the adequacy and effectiveness of their policies, procedures and controls to ensure they are compliant with their legal and regulatory obligations.

• Areas of focus for the Evaluation are anti-money laundering (AML), countering the financing of terrorism (CFT), countering proliferation financing (CPF) and targeted financial sanctions. In particular, FSPs should make sure their controls include audits, risk assessments with reference to proliferation financing (PF) risks, training and record keeping.